Informal construction as political currency: A theory of ‘election-driven informality’

Drini Imami, Endrit Lami and Dorina Pojani

Land Use Policy, 2022, vol. 112, issue C

Abstract: Incumbent governments commonly increase public expenditures prior to elections in order to curry favor with voters and boost their chances of retaining office. This study, set in Albania, focuses on a non-fiscal approach to winning votes: condoning, or at least tolerating, informal construction activities in the residential sector prior to elections. We term this approach ‘election-driven informality’ (EDI). This study provides longitudinal statistical evidence for EDI using a proxy indicator for informal construction. We hypothesize and prove that EDI is a reality rather than a mere perception - primarily for the 2017 election. That was when the government’s enforcement capacity in the construction sector was effective outside the election period. In a context where there is little moral value attached to law abidance, businesses or households that engage in informal economic activities might perceive a tolerant government as “magnanimous” and might be persuaded to support it in upcoming elections. From government’s perspective, EDI presents an opportunity for a version of “pork barrel” politics where “tolerance” is applied selectively or differentially to households, businesses, or whole regions.

Keywords: Construction informality; Elections; Transition; Albania (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:112:y:2022:i:c:s0264837721005081

DOI: 10.1016/j.landusepol.2021.105785

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